You’ve probably heard some horror stories from landlords who were left to deal with horrible tenants, excessive property damage, or expensive lawsuits and disputes. Or, maybe you have experienced some of these things yourself.
Being a landlord is an excellent way to establish yourself as a real estate investor and earn some money off one property or an entire portfolio. However, it also comes with a lot of risk and uncertainty. You need to be prepared, and you need to have the tools and resources in place to recover from catastrophes and surprises.
Today, we’re talking about some of the most common fears landlords have when they’re renting out their properties, and how you can avoid them.
Tenants Who Don’t Pay Rent
You’ll rely on your rental income to provide the cash flow you need to run a profitable Tampa rental property. That income can also help you make your mortgage payment and meet your other financial responsibilities such as taxes, insurance, and perhaps even HOA fees. If rent is late every month or doesn’t come in at all, you have a huge problem. The best way to avoid this dilemma is to screen your tenants thoroughly. Verify that your tenant earns enough to cover the rental payment. When you’re conducting landlord reference checks, ask if rent was paid on time every month.
You’ll also need a clear and consistent rental collection policy. Enforce any consequences such as late fees, and be prepared to start the eviction process sooner rather than later. Don’t wait for a tenant to fall behind for several months.
Tenants Who Damage Property
A good tenant will help you maintain your home, and at the end of the lease period, you’ll receive a property that’s in the same condition it was in when you handed over the keys. Sometimes, landlords are surprised when they walk into their home after a tenant moves out and there are broken appliances, large holes in the walls, tubs and toilets that are filthy, and flooring that has been scratched, stained, and torn up. It’s going to take a lot of time and money to get your property back into the sort of condition you want it to be in before you re-rent it.
Make sure you collect a security deposit that will cover any potential damage. If your tenant has pets, collect a pet fee. Conduct routine inspections so you can catch any of these problems before they get out of control. Again, screening can help you avoid these situations. When you’re talking to former landlords, ask if any damage was left behind and if they were able to return the tenant’s full security deposit.
Legal and Liability Nightmares
Many of the landlord horror stories we hear involve a property owner making an unintentional but expensive mistake. Fair housing claims can cost tens of thousands of dollars. Security deposit disputes can result in the return of a tenant’s deposit and then a punitive fine of up to three times the amount of that deposit. If you try to deny a tenant who needs a service animal because you have a no-pets policy, you’re violating the Americans with Disabilities Act.
You need to know the law, and you need to stay one step ahead of your tenants, who definitely know what they can get away with.
We can help you avoid these situations. Contact us at Real Property Management Instant Equity, and we’ll tell you how we can help you have a better rental experience.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
